Method and system for providing minimum contract values in an annuity with lifetime benefit payments

ABSTRACT

A data processing method administers a deferred annuity product during the accumulation phase for a relevant life. The annuity product has a contract value, a guarantee of lifetime benefit payments and a minimum contract value. Administration of the product determines a minimum contract value, while paying a lifetime benefit payment and a guaranteed death benefit. The lifetime benefit payment does not reduce the contract value below the minimum contract value. If necessary, the lifetime benefit payment is funded by the general account assets of the company that issues the annuity product.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates to a method and system for providingminimum contract values in an annuity with lifetime benefit payments;and more particularly, to a data processing method for administering anannuity product for a relevant life, the annuity product having acontract value, a guarantee of lifetime benefit payments and a minimumcontract value.

2. Description of the Prior Art

An immediate annuity is typically used to provide an income streamwithin a predetermined length of time from the date the premium isreceived. The amount of income can be either fixed or variable in natureand typically these products do not provide an account value. A deferredannuity is typically used to provide accumulation and, potentially, afuture stream of annuity income. The deferred annuity comprises anaccumulation period during which the account value will vary with theunderlying investments and an annuitization period where the clientpurchases an immediate annuity with the account value available.Deferred and immediate annuities typically provide guaranteed income forlife which transfers some portion or all of the risk of outliving one'saccumulated assets to the insurer.

One basis for distinguishing commonly available deferred annuities iswhether the annuity is classified as a “fixed annuity” or a “variableannuity”.

In a fixed annuity, the insurer guarantees a fixed rate of interestapplicable to each annuity deposit. Therefore, a fixed annuity isdesirable for those seeking a “safe” investment. The guaranteed interestrate may apply for a specified period of time, often one year or more.Often, a rate guaranteed for more than one year is called a “multi-yearguarantee”. The rate credited on a fixed annuity is reset periodically,moving in an amount and a direction that correlate the yields availableon fixed-income investments available to the insurer.

With a variable annuity, the annuity contract owner bears the investmentrisk. The relevant life typically has a choice of funds in which he/shecan direct where the annuity deposits will be invested. The variousfunds, or sub-accounts, may include stocks, bonds, money marketinstruments, mutual funds, and the like.

Variable annuity contracts typically provide a death benefit.Oftentimes, during the accumulation period, this death benefit isrelated to the contract value. That is, if the sub-accounts backing thecontract value have performed poorly, then the death benefit may bereduced to an insignificant amount. After annuitization, the deathbenefit can be a function of the remaining payments of the annuity atthe time of the relevant life's death. Further, if the annuity contractdoes not provide a guarantee (GMIB, GMWB, etc.), the contract willterminate when the contract value goes to $0 or some other amountspecified in the contract or rider.

Annuity contracts may also provide guarantees in several differentvariations. A Guaranteed Minimum Death Benefit (GMDB) is a guaranteethat provides a minimum benefit at the death of the relevant liferegardless of the performance of the underlying investments. AGuaranteed Minimum Income Benefit (GMIB) is a guarantee that willprovide a specified income amount at the time the contract isannuitized. The income payment will be dependent on previously stateddetails set out in the contract. A Guaranteed Minimum AccumulationBenefit (GMAB) is a benefit that guarantees a specified contract valueat a certain date in the future, even if actual investment performanceof the contract is less than the guaranteed amount. A Guaranteed MinimumWithdrawal Benefit (GMWB) is a guarantee of income for a specifiedperiod of time, and in some versions the income stream is guaranteed forlife without requiring annuitization as in the guaranteed minimum incomebenefit. However, this guarantee will automatically annuitize thecontract if the contract value is reduced to zero or some other amountspecified in the contract or rider.

There remains a need in the art for a data processing method foradministering an annuity product for a relevant life wherein the annuityproduct has a guarantee of lifetime benefit payments. In addition, thereis needed a data processing method wherein the annuity product isdesigned to maintain a minimum contract value while continually payinglifetime benefit payments wherein the minimum contract value helps toprevent the contract value from otherwise being reduced to zero or belowanother stated amount in the contract or rider which, in that case,would require the contract to annuitize in order to continue lifetimepayments.

In addition, there is needed an annuity product wherein, if necessary,the lifetime benefit payments are funded by the general account assetsof the company that issues the annuity product, rather than from thecontract value, in order to help prevent the contract value from beingreduced to zero or below another stated amount in the contract or therider.

SUMMARY OF THE INVENTION

The present invention provides a data processing method foradministering a deferred annuity product during the accumulation phasefor a relevant life wherein the annuity product has a guarantee oflifetime benefit payments. Administration is such that the annuityproduct maintains or guarantees a minimum contract value regardless ofthe amount of income received as long as the income has been receivedaccording to the contract or rider rules contained herein. Bymaintaining or guaranteeing a minimum contract value, the annuityproduct provides a death benefit even if the guaranteed death benefit isat or near zero at the time of the relevant life's death. In prior artannuity products, the contract value and death benefit could be depletedby continuing to receive lifetime benefit payments, but by insulatingthe contract value from withdrawals when it falls to the minimumcontract value, the present invention includes a minimum contract value,and similarly death benefit, that are maintained or guaranteed.

The data processing method and system of the invention maintains orguarantees a minimum contract value in an annuity with lifetime benefitpayments. The data processing method administers an annuity producthaving a contract value, together with a guarantee of lifetime benefitpayments and the maintenance or guarantee of a minimum contract value.

Generally stated, the method of the invention determines a payment basefor the annuity product that is a function of the previous premiumpayments and withdrawals by the relevant life, and could includeinvestment performance on an annual or other basis (daily, monthly,etc.). The method determines a minimum contract value (MCV) for theannuity product. The MCV may be determined by any of the followingformulas:MCV=(a predetermined percentage)×(the payment base)MCV=(a predetermined percentage)×(the total premium). Other methods fordetermining the MCV may be utilized.The method also determines a guaranteed death benefit amount. During theaccumulation phase the system performs the following steps: (i) ifrequested by the relevant life, periodically accepting premium paymentsfrom the relevant life which increase the payment base, the guaranteeddeath benefit amount, and the contract value; (ii) determining awithdrawal percent; (iii) if requested by the relevant life, or if otherdefined criteria are reached, periodically paying a guaranteed lifetimebenefit payment withdrawal to the relevant life from the contract valuewhich decreases both the contract value and the guaranteed death benefitamount, but will not decrease the contract value below the minimumcontract value, wherein the guaranteed lifetime benefit payment isdetermined by any of the following formulas:Living Benefit Payment (LBP) withdrawal=(the Payment Base)×(theWithdrawal Percent);Living Benefit Payment (LBP) withdrawal=(the total premium)×(theWithdrawal Percent);and (iv) if requested by the relevant life, periodically paying awithdrawal payment—that is in excess of the lifetime benefit payment—tothe relevant life from the contract value which decreases each of: thecontract value, the payment base, and the death benefit amount, and candecrease the contract value below the minimum contract value. Upon thedeath of the relevant life, the present method pays a death benefit to abeneficiary, wherein the death benefit is the greater of: (a) theguaranteed death benefit amount; and (b) the present contract value.

In one aspect of the invention, the annuity product of the dataprocessing method is a deferred variable annuity. In another aspect ofthe invention, the annuity product of the data processing method is adeferred variable annuity and further includes sub-accounts whose marketperformance can cause the contract value to decrease below the minimumcontract value. In other aspects of the invention, the annuity productmay be selected from the group of fixed, combination variable/fixed, andequity indexed annuities.

In one aspect of the invention, the predetermined percentage that isused to calculate the minimum contract value is 20%. The predeterminedpercentage may be any percentage between 0% and 100%. Preferably, thedeferred variable annuity of the present invention has a maximum annuitycommencement date that is the later of the 10^(th) contract anniversaryand the date the relevant life reaches age 90. If the method of thepresent invention is in the form of a rider, then the administration ofthe annuity product for the relevant life further comprises the step of:collecting a rider fee. Alternatively, the data processing method foradministering an annuity product for a relevant life further comprisesthe step of: collecting a rider fee only if the current contract valueis greater than the minimum contract value; or, in other words, ceasingcollection of the rider fee if the current contract value is less thanthe minimum contract value.

The data processing method for administering an annuity product for arelevant life can further comprise the step of: collecting an accountmaintenance fee. Alternatively, the data processing method foradministering an annuity product for a relevant life can furthercomprise the step of: collecting an account maintenance fee only if thecurrent contract value is greater than the minimum contract value; or,in other words, ceasing collection of the account maintenance fee if thecurrent contract value is less than the minimum contract value

In addition, the account may be subject to M, E & A, 12 b-1 and fundlevel charges. These charges may or may not be assessed against thecontract value if the contract value is below the minimum contractvalue.

The guaranteed death benefit is paid to the beneficiary only if therelevant life dies during the accumulation phase. However, a guaranteeddeath benefit may also be payable during annuitization as well. Thelifetime benefit payment may also be determined by the followingformula:LBP=the greater of:(i) “the guaranteed lifetime benefit payment”−(the Payment Base)×(theWithdrawal Percent); and(ii) “the maximum lifetime benefit payment”−(the present ContractValue)×(the Withdrawal Percent).The lifetime benefit payment may be paid once yearly or periodicallythroughout the year; however, there is a maximum lifetime benefitpayment for any given year. If the contract value would be equal to orless than the minimum contract value, then the guaranteed lifetimebenefit payment is paid out of the general account assets of the companyissuing the annuity product, and the contract value is not decreased.This feature is an added benefit that provides the relevant life withflexibility and control by continuing to have a contract value, andprovides the opportunity to continue to grow that value throughinvestment performance. In prior art annuity products, the relevant lifeloses any-asset control once the contract value drops to a minimumcontract value amount under the annuity rules because, at that time, thecontract would either terminate or annuitize.

In one aspect, the value of the annuity payments, if necessary, equalsthe value of the last guaranteed lifetime benefit payment. In otheraspects, excess withdrawals, Required Minimum Distributions or step-upscould cause the value of the annuity payments or guaranteed lifetimebenefit payments to change.

In another aspect of the invention, there is provided a data processingmethod for administering an annuity product for a relevant life, theannuity product having a contract value and a guarantee of lifetimebenefit payments and a minimum contract value, comprising the steps of:(i) establishing a minimum contract value; (ii) paying a lifetimebenefit payment; and (iii) maintaining a death benefit.

The invention can comprise an annuity product having: (i) means forestablishing a minimum contract value; (ii) means for paying a lifetimebenefit payment; and (iii) means for maintaining a death benefit. It canalso comprise an annuity product having means for insulating a minimumcontract value from the effect of withdrawal payments, living benefitrider fees or other dollar-based charges.

In yet another aspect of the invention, there is provided a dataprocessing method for administering an annuity product for a relevantlife, the annuity product having a contract value, a guarantee oflifetime benefit payments and the maintenance or guarantee of a minimumcontract value, comprising the steps of: (i) determining a payment basefor said annuity product; and (ii) determining a minimum contract value(MCV) for said annuity product that is determined by the followingformula:MCV=(a predetermined percentage)×(the payment base).This formula could also be applied to the premium in another embodiment.

The present invention solves several of the problems associated withconventional administration of annuity products. Maintenance of aminimum contract value aids a relevant life's recovery from low ornegative-yield investments. The relevant life is afforded increasedsecurity by maintenance of a lifetime benefit payment, a death benefit,and liquidity in the form of a minimum contract value during hardship.If the contract value falls to the minimum contract value, the presentinvention provides the relevant life with added benefits of maintaininga death benefit, providing continued flexibility of investments,potential relief from paying contract fees, and maintaining control ofassets instead of annuitizing the contract.

BRIEF DESCRIPTION OF DRAWINGS

The invention will be more fully understood and further advantages willbecome apparent when reference is had to the following detaileddescription of the preferred embodiments and the accompanying drawings,in which:

FIG. 1 is a flow chart illustrating a preferred embodiment of thepresent invention comprising a data processing method for administeringan annuity product for a relevant life.

DESCRIPTION OF THE PREFERRED EMBODIMENTS

The present invention comprises a data processing method foradministering an annuity product having a guarantee of lifetime incomeand a minimum contract value that never reaches a zero value. (The onlyway for the minimum contract value to reach zero is if the funds backingthe sub-accounts become valueless, or if the relevant life takeswithdrawals in excess of the living benefit payment.) The present dataprocessing method is preferably in the form of a rider to a variableannuity contract wherein the rider provides that the relevant life has aminimum contract value. In another aspect of the invention, the presentdata processing method is not in the form of a rider, but is a part ofthe base contract. In exchange for paying higher fees, the relevant lifereceives several advantages by selecting the method and system of thepresent invention which provides a minimum contract value. Theseadvantages include the following:

First, the relevant life will sustain a death benefit. The death benefitprovision, in accordance with the present invention, guarantees thatupon death of the relevant life, a death benefit (DB) will be paid to abeneficiary named in the contract. That death benefit payment will beequal to the greater of: (i) the guaranteed death benefit; and (ii) thecontract value as of the date the annuity company receives due proof ofdeath. Typically, receiving income payments reduces the death benefit onthe contract by reducing the guaranteed death benefit as well as thecontract value. However, if the contract value is at or below theminimum contract value, then the contract value is no longer reducedwhen receiving income payments, and therefore the death benefit is“protected” and will still be there when it typically would haveotherwise been exhausted. Further, in one embodiment of the presentinvention, the minimum contract value is guaranteed, such that theguaranteed death benefit would never fall below the minimum contractvalue.

Second, compared to prior art methods, the relevant life may receivelifetime benefit payments that continue for a longer period of timeprior to the “annuitization period”. Some prior art methods forceannuitization when the contract value drops down to minimum contractrules. If the product did not annuitize, it could possibly terminatewithout value. Under the present invention, once the contract valuereaches the minimum contract value, the income payments no longer reducethe contract value upon each withdrawal, and therefore the contractvalue can be maintained or guaranteed for a longer period of time. Thiswould allow the relevant life to maintain additional control over thecontract and the investments within the contract.

Third, if applicable, the rider fee and account maintenance fee arewaived if the contract value falls below the minimum contract value.Therefore by waiving the fees, this feature is an additional method ofmaintaining or guaranteeing a minimum contract value. This reduces thecost of the contract for the relevant life.

Fourth, it facilitates potential recovery of the contract value after asustained period of poor investment returns by allowing the contractvalue the chance to rebound and increase above the minimum contractvalue. For example, if the investments in the contract experience enoughpositive growth, the contract value has an opportunity to increase abovethe minimum contract value. This would not have been possible if theminimum contract value did not prevent fees and income payments fromreducing the contract value once it reaches the minimum contract value.

The present invention comprises a data processing method foradministering an annuity product for a relevant life, the annuityproduct having a contract value and a guarantee of lifetime benefitpayments and a minimum contract value, comprising the steps of: (i)establishing a minimum contract value; (ii) paying a lifetime benefitpayment; and (iii) maintaining a death benefit. The lifetime benefitpayment does not reduce the contract value below the minimum contractvalue. If necessary, the lifetime benefit payment is funded by thegeneral account assets of the company that issues the annuity product.

The following definitions are given hereunder for terms used in thespecification:

-   -   “Relevant Life”: Depending on the type of annuity product, the        term relevant life may refer to any one of the following: an        owner, joint owner, annuitant, joint annuitant, co-owner,        co-annuitant or beneficiary.    -   “Minimum Contract Value”: A predetermined percentage (preferably        20%, but can be any other pre-selected percentage) of the        relevant life's Payment Base or premium on the date of a        withdrawal request. It should be understood that in other        embodiments of the present invention, other formulas may be        utilized for determining the minimum contract value.    -   “Payment Base (PB)”: The Payment Base is the amount used in one        embodiment of the present invention to determine the Lifetime        Benefit Payment and the Rider Charge. In one embodiment of the        present invention, the initial Payment Base equals the initial        premium.    -   “Premium”: 100% of the dollar amount of the initial or        subsequent premium payments deposited into the contract before        application of any sales charges or Payment Enhancements.    -   “Withdrawal Request”: A request made by the relevant life to        withdraw funds during the “accumulation phase” of the contract.        One type of withdrawal is a Lifetime Benefit Payment. Any        withdrawal that is in excess of the lifetime benefit payment        may: (i) decrease the contract value below the minimum contract        value; (ii) decrease the payment base; and (iii) decrease the        guaranteed death benefit.    -   “Lifetime Benefit Payment”: A benefit payment that is available        until the death of the relevant life. The lifetime benefit        payment may be paid yearly. The total lifetime benefit payment        for the year may also be distributed monthly, quarterly or any        other defined period. Preferably, if covered life age is 60 (or        other predetermined age) or older, then LBP=Payment Base×the WP        (withdrawal percent) for the Relevant Life's attained age.        Preferably, if the Relevant Life is Age 59 (or other        predetermined age) or younger, the LBP is equal to zero. Other        age restrictions can also be utilized for the lifetime benefit        payment. A lifetime benefit payment withdrawal will not decrease        the contract value below the minimum contract value. The        lifetime benefit payment may also be determined by the following        formula:        LBP=the greater of:        “the guaranteed lifetime benefit payment”−(the Payment        Base)×(the Withdrawal Percent); and        “the maximum lifetime benefit payment”−(the present Contract        Value)×(the Withdrawal Percent).    -   It should be understood that in other embodiments of the present        invention, other formulas may be utilized for determining the        lifetime benefit payment.    -   “Contract Value (CV)”: A numerical measure of the relative worth        of a Variable Annuity Product during the accumulation phase. The        contract value is determined by adding the amount of purchase        payments made during the accumulation phase, deducting        management fees, deducting contract fees, deducting optional        rider fees and surrenders made by the owner, and adjusting for        the relative increase (or decrease) of the investment option(s)        chosen by the owner. It should be understood that in other        embodiments of the present invention, other formulas may be        utilized for determining the contract value.    -   “Sub-account”: Variable account investments within the variable        annuity contract, such as mutual funds, stocks, and bonds.    -   “Withdrawal”: Also known as a “surrender”, a relevant life may        withdraw up to the contract value at any time.    -   “Death Benefit”: The death benefit provision guarantees that        upon death of the relevant life a death benefit (DB) is paid to        a beneficiary named in the contract that is equal to the greater        of the Guaranteed Death Benefit or the Contract Value as of the        date the annuity company receives due proof of death. It should        be understood that in other embodiments of the present        invention, other formulas may be utilized for determining the        guaranteed death benefit.    -   “AMF”: Annual Maintenance Fee.    -   “Annuity Commencement Date”: Date upon which the contract enters        the “annuitization phase”.    -   “Withdrawal Percent (WP)”: In one embodiment of the present        invention, the Withdrawal Percent is used to determine the        amount of the Lifetime Benefit Payment. It should be understood        that in other embodiments of the present invention, other        formulas may be utilized for determining the lifetime benefit        payment.    -   “PB increase”: Payment Base increase.

FIG. 1 is a flow chart illustrating a preferred embodiment of thepresent invention comprising a data processing method for administeringan annuity product for a relevant life. It should be understood that theorder of the successive method steps is shown for the sake ofillustrating but one example and that the order of method steps canproceed in any variety of orders. In one embodiment of the presentinvention, the invention comprises a data processing method foradministering an annuity product for a relevant life, the annuityproduct having a contract value and a guarantee of lifetime benefitpayments and a minimum contract value. The present method determines apayment base for said annuity product (block 10) that is a function ofthe previous premium payments and withdrawals by the relevant life. Thepresent method determines a minimum contract value (MCV) for the annuityproduct (block 11).

The present method determines a guaranteed death benefit amount (block13). As described below, the guaranteed death benefit amount can changeduring the accumulation period. At (block 14) the present method runs.During the accumulation phase the system performs the following steps:(i) if requested by the relevant life, periodically accepting premiumpayments from the relevant life (block 15) which increase the paymentbase, the guaranteed death benefit, and the contract value; (ii) ifrequested by the relevant life and the covered life is older than apredetermined age (i.e. 60 years old), periodically paying a guaranteedlifetime benefit payment to the relevant life (block 17) from thecontract value which decreases both the contract value and theguaranteed death benefit amount, but will not decrease the contractvalue below the minimum contract value;

and (iii) if requested by the relevant life, periodically paying awithdrawal payment (block 18)—that is in excess of the lifetime benefitpayment—to the relevant life from the contract value which decreaseseach of: the contract value, the payment base, and the death benefitamount, and can decrease the contract value below the minimum contractvalue. Upon the death of the relevant life, the present method pays adeath benefit (block 20) to a beneficiary, wherein the death benefit isthe greater of: (a) the guaranteed death benefit; and (b) the presentcontract value.

It should be understood that several of the method steps of the presentinvention (for example blocks 10-13) require the input of a human beingin order to be able to determine the respective values. In other words,a computer is not required to use the method of the present invention;that is to say the calculations and appropriate data records may bemanually accomplished by hand. For example, in one embodiment of thepresent invention, the payment base is related to premium payments bythe relevant life, wherein some of the premium payments may bediscretionary. In one embodiment, the minimum contract value isdependent on a pre-selected percentage selected by the company issuingthe annuity and/or the relevant life. Preferably, the pre-selectedpercentage is fixed and is set by the company issuing the annuity. Theannuity commencement date is discretionary and is selected by thecompany issuing the annuity and/or the relevant life, with certainrestrictions. The initial guaranteed death benefit amount isdiscretionary and is determined by the company issuing the annuityand/or the relevant life. Preferably, the company issuing the annuitysets the initial guaranteed death benefit amount for calculationpurposes. In a preferred embodiment, the initial guaranteed deathbenefit amount is equal to the payment base.

The following detailed illustrative embodiment is presented to provide amore complete understanding of the invention. The specific techniques,systems, and operating structures set forth to illustrate the principlesand practice of the invention may be embodied in a wide variety ofsizes, shapes, forms and modes, some of which may be quite differentfrom those in the disclosed embodiment. Consequently, the specificstructural and functional details disclosed herein are exemplary. Theyare deemed to afford the best embodiment for purposes of disclosure; butshould not be construed as limiting the scope of the invention.

Design:

Although reference is made to a “rider” hereinbelow, it should beunderstood that the following illustrative example may also be appliedto a base product.

1. Premium:

For purposes of this illustrative embodiment, “premium” means 100% ofthe dollar amount of the initial or subsequent premium paymentsdeposited into the contract before application of any sales charges orPayment Enhancements.

2. Partial Surrender:

For purposes of this illustrative embodiment, the term “partialsurrender” means the gross amount of the partial surrender and willinclude any applicable Contingent Deferred Sales Charges.

3. Covered Life:

The Covered Life, or Relevant Life, is the governing life fordetermination of the living benefits provided under this illustrativeembodiment.

Single Life Election:

If a Natural Owner—the Covered Life is the owner and the joint owner (ifany) on the Rider effective date. If a Non-Natural Owner—the CoveredLife is the Annuitant on the Rider effective date. All age-contingentbenefit provisions are based on the attained age of the OLDEST CoveredLife.

Joint/Spousal Continuation Election:

If a Natural Owner—the Covered Life is both the spouses (as defined byFederal Law). All age-contingent benefit provisions are based on theattained age of the YOUNGEST Covered Life.

4. Issue Rules:

(The following Issue Rules are set forth to provide a more completeunderstanding of this illustrative embodiment of the present invention.It should be understood by those skilled in the art that these issuerules are set forth for illustrative purposes only and that other rulesmay be utilized. Accordingly, the issue rules set forth below should notbe construed as limiting the scope of the invention.)

Maximum Issue Age

Benefit Option 1 These Riders are not available if ANY Covered Life orAnnuitant is age 81 (or other predetermined age) or greater on the Ridereffective date. Benefit Option 2: These Riders are not available if ANYCovered Life or Annuitant is age 76 (or other predetermined age) orgreater on the Rider effective date.

The Rider may be elected on contract issue or post-issue.

Single Life Election: No Additional Requirements

Joint/Spousal Continuation Election:

(This may also Include Co-Annuitants)

One of the following must apply:

-   -   If a natural owner purchases Joint/Spousal election, and adds a        spousal joint owner, then the owner can name anyone else as the        designated beneficiary, because by contract disposition, the        joint owner will receive the Death Benefit. If a natural owner        purchases Joint/Spousal election, and does not add a joint        owner, then the owner must name their spouse as the designated        beneficiary. If a non-natural owner purchases Joint/Spousal        election, then the annuitant's spouse must be the designated        beneficiary.

A joint owner who is not the owner's spouse is not allowed.

5. Withdrawal Percent:

The Withdrawal Percent is used to determine the amount of the LifetimeBenefit Payment.

The WP is determined at the later of; (i) The attained age of theCovered Life on the most recent contract anniversary prior to the firstwithdrawal, or (ii) The contract anniversary immediately following theCovered Life's 60^(th) birthday (or other predetermined age).

Single Life Election:

(Note: the following percentages and ages, if ages are in fact used, canvary)

-   -   5.0% for attained ages 60 to 64    -   5.5% for attained ages 65 to 69    -   6.0% for attained ages 70 to 74    -   6.5% for attained ages 75 to 79    -   7.0% for attained ages 80 and above        Joint/Spousal Continuation Election:    -   4.5% for attained ages 60 to 64    -   5.0% for attained ages 65 to 69    -   5.5% for attained ages 70 to 74    -   6.0% for attained ages 75 to 79    -   6.5% for attained ages 80 and above.        6. Payment Base (PB):

The PB is the amount used to determine the Lifetime Benefit Payment andthe Rider Charge.

SPECIAL NOTE on TOLERANCE: A total partial surrender amount in aContract Year that exceeds the LBP by not more than $0.12 (the toleranceamount) will be deemed not more than the LBP. This provision recognizesthat owners may take the LBP in installments over the year, and theamount of installment may round the proportional distribution amount tothe higher cent. Therefore, owners intended to stay within the LBP mayexceed it by only a few cents.

Maximum PB is $5,000,000.

At Rider Effective Date: If this Rider is effective on the ContractIssue Date, then the PB equals the X % of the initial premium. If thisRider is effective after the Contract Issue Date, then the PB equals100% of the dollar amount of the Contract Value on the Rider effectivedate, less any payment enhancements received in the last 12 months.

When Subsequent Premium Payments are received, the PB will be increasedby 100% of the dollar amount of the subsequent premium payment.

Whenever a partial surrender is made prior to the contract anniversaryimmediately following the Covered Life's 60^(th) birthday (or otherpredetermined age), the payment base is reduced for an adjustmentdefined below.

“Threshold” definition: 5% Single/4.5% Joint/Spousal multiplied by thegreater of the Payment Base or Contract Value at the beginning of thecontract year plus subsequent premiums prior to a partial surrender.

For cumulative partial surrenders during each Contract Year that areequal to or less than the Threshold, the adjustment is equal to thedollar amount of the partial surrender.

For any partial surrender that first causes cumulative partialsurrenders during the contract year to exceed the Threshold, theadjustment is the dollar amount of the partial surrender that does notexceed the Threshold. For the portion of the withdrawal that exceeds theThreshold, the adjustment is a factor. The factor is as follows:1−(A/(B−C)) where

-   -   A=partial surrenders during the Contract Year in excess of the        Threshold;    -   B=Contract Value immediately prior to the partial surrender; and    -   C=the Threshold, less any prior partial surrenders during the        Contract Year. If C results in a negative number, C becomes        zero.

For partial surrenders during each Contract Year, where the sum of priorpartial surrenders are in excess of the Threshold, the adjustment is afactor. The factor is applied to the Payment Base immediately before thesurrender. The factor is as follows:1−(A/B) where

-   -   A=The amount of the Partial surrender;    -   B=Contract Value immediately prior to the partial surrender.

Whenever a partial surrender is made on or after the contractanniversary immediately following the Covered Life's 60^(th) birthday(or other predetermined age), the PB will be equal to the amountdetermined as follows:

-   -   If the total partial surrenders since the most recent Contract        Anniversary are equal to or less than the current Lifetime        Benefit Payment (LBP), the PB is NOT reduced by the amount of        the partial surrender.    -   If the total partial surrenders since most recent Contract        Anniversary are more than the current LBP, but all partial        surrenders were paid under the Automatic Income Required Minimum        Distribution (AI RMD), the PB is NOT reduced by the amount of        partial surrender.    -   For any partial surrender that first causes cumulative partial        surrenders during the contract year to exceed the current LBP        and the RMD exception above does not apply the adjustment is a        factor. The factor is as follows:        1−(A/(B−C)) where    -   A=partial surrenders during the Contract Year in excess of the        LBP;    -   B=Contract Value immediately prior to the partial surrender; and    -   C=the LBP, less any prior partial surrenders during the Contract        Year. If C results in a negative number, C becomes zero.

For additional partial surrender(s) in a contract year, where the sum ofall prior Partial Surrenders exceed the current LBP, we will reduce thePB by applying a factor. The factor is as follows:1−(A/B) where

-   -   A=the amount of the partial surrender;    -   B=Contract Value immediately prior to the partial surrender.

See Section 9. CDSC-Free up to the amount of the LBP.

7. Benefit Increase Provision:

Benefit Option 1

The Withdrawal Percent will be set at the attained age of the firstwithdrawal and will not increase thereafter.

Benefit Option 2

The benefit increase is facilitated through an increase in the PaymentBase.

On every contract anniversary up to and including the contractanniversary immediately following the Covered Life's 80^(th) birthday(or other predetermined age), we will automatically determine if anincrease in the PB is applicable. If an increase is applicable, We willautomatically increase the PB by the factor below, subject to a minimumof zero and a maximum of 10% (note: the percentage could change or itcould be a full step up (no limit)):

-   -   (Contract Value prior to Rider Charge taken on current        anniversary/Maximum Contract Value)−1

where Maximum Contract Value equals the greater of (A) or (B) below:

-   -   (A) the Contract Value on the Rider effective date, plus        premiums received after the Rider effective date    -   (B) the Contract Value on each subsequent contract anniversary,        excluding the current contract anniversary plus premiums        received after the contract anniversary date. (Similar to MAV        except that there is no adjustment for withdrawals.)

The WP is locked in on the date of the first withdrawal.

8. Lifetime Benefit Payment (LBP):

The LBP is available until the death of any Covered Life or until thewithdrawal benefit is revoked. See details at Section 25. Revoking theWithdrawal Feature.

SPECIAL NOTE on TOLERANCE: A total partial surrender amount in aContract Year that exceeds the LBP by not more than $0.12 (the toleranceamount) will be deemed not more than the LBP. This provision recognizesthat owners may take the LBP in installments over the year, and theamount of installment may round the proportional distribution amount tothe higher cent. Therefore, owners intended to stay within the LBP mayexceed it by only a few cents.

On the Rider effective date:

-   -   If the Covered Life is Age 60 (or other predetermined age) or        older on the Rider Effective Date, the LBP is equal to the        Payment Base multiplied by the WP for the Covered Life's        attained age.    -   If the Covered Life is Age 59 (or other predetermined age) or        younger on the Rider Effective Date, the LBP is equal to zero.

On any contract anniversary immediately following the Covered Life's60^(th) birthday (or other predetermined age): The LBP is equal to theWP multiplied by the greater of Payment Base or the Contract Value onthe anniversary for both the Age-Based and the Market-Based Riders,single and spousal. The LBP can fluctuate year to year due to marketperformance, but will never be lower than the WP multiplied by the PB aslong as the Covered Life has reached the age of 60 (or otherpredetermined age). Also, if the account value on the anniversaryexceeds the PB, the LBP may decrease in future years but will never beless than the PB multiplied by the WP.

When a subsequent premium payment is made after the contract anniversaryimmediately following the Covered Life's 60^(th) Birthday (or otherpredetermined age), the LBP is equal to, the greater of: (i) The WP, onthe most recent contract anniversary, multiplied by the greater of thePB or contract value immediately after the subsequent premium isreceived, OR (ii) The prior LBP.

Whenever a partial surrender is made on or after the contractanniversary immediately following the Covered Life's 60^(th) Birthday(or other predetermined age):

-   -   If the PB is 0 (zero) due to withdrawals, the LBP is equal to 0        (zero). During the deferral stage, subsequent premiums may be        made to re-establish the PB and the LBP.

The LBP will be equal to the amount determined in either one as follows:

-   -   If the total partial surrenders since most recent Contract        Anniversary are equal to or less than the current Lifetime        Benefit Payment (LBP), the LBP is equal to the LBP immediately        prior to the partial surrender, OR    -   If the total partial surrenders since most recent Contract        Anniversary are more than the current LBP, but all partial        surrenders were paid under the Automatic Income Required Minimum        Distribution (AI RMD), the provisions of above will apply, OR    -   If the total partial surrenders since most recent Contract        Anniversary are more than the current LBP and the AI RMD        exception in above does not apply, the LBP is reset to the WP on        the most recent contract anniversary multiplied by the greater        of the PB or contract value immediately after the partial        surrender.

The contract owner may request an amount less than, equal to, or greaterthan the Lifetime Benefit Payment.

Total partial surrenders taken during a contract year on or after thecontract anniversary immediately following the Covered Life's 60^(th)birthday (or other predetermined age) which exceed the LBP may reducefuture LBP values and may reduce the PB.

If the total amount requested by the contract owner during a contractyear is less than the Lifetime Benefit Payment, the excess cannot becarried over to increase future years Lifetime Benefit Payments.

9. CDSC-Free up to the Amount of the LBP

If your LBP exceeds your Actual Withdrawal Amount (AWA) on the mostrecent contract anniversary, we will waive any Contingent Deferred SalesCharge (CDSC) up to the LBP amount.

10. Death Benefit Before Annuity Commencement Date:

For both Single and Joint/Spousal election, a death benefit may beavailable on the death of any Owner or Annuitant. For Joint/Spousalelection only, no death benefit will be available when a Covered Life isthe Beneficiary, and the Beneficiary dies.

The death benefit provision guarantees that upon death we will pay adeath benefit (DB) equal to the greater of the Death Benefit or theContract Value as of the date we receive due proof of death.

The Rider charge is not assessed on death.

When due proof of death is processed, the contract will go into suspensemode. No charges will apply during that period.

The amount available to be paid as a death benefit under the terms ofthe Rider is a return of premium adjusted for subsequent premiumpayments and partial surrenders.

At Rider Effective Date:

If this Rider is effective on the Contract Issue Date, then the DBequals the initial premium.

If this Rider is effective after the Contract Issue Date, then the DBequals 100% of the dollar amount of the Contract Value on the Ridereffective date, less any bonus payments paid into the contract by thecompany in the last 12 months.

When a subsequent premium payment is received, the DB will be increasedby 100% of the dollar amount of the subsequent premium payment.

If the Withdrawal Feature is revoked, all future withdrawals from theDeath Benefit will be fully proportional (but not necessarilyproportional) as of the date it is revoked.

Whenever a partial surrender is made prior to the contract anniversaryimmediately following the Covered Life's 60^(th) birthday (or otherpredetermined age), the death benefit is reduced for an adjustmentdefined below.

“Threshold” definition: see definition in Payment Base.

For cumulative partial surrenders during each Contract Year that areequal to or less than the Threshold, the adjustment is the dollar amountof the partial surrender.

For any partial surrender that first causes cumulative partialsurrenders during the Contract Year to exceed the Threshold, theadjustment is the dollar amount of the partial surrender that does notexceed the Threshold, and the adjustment for the remaining portion ofthe partial surrender is a factor. The factor is applied to the portionof the Death Benefit that exceed the Threshold. The factor is asfollows:1−(A/(B−C)) where

-   -   A=partial surrenders during the Contract Year in excess of the        Threshold;    -   B=Contract Value immediately prior to the partial surrender; and    -   C=the Threshold less any prior partial surrenders during the        Contract Year. If C results in a negative number, C becomes        zero.

For partial surrenders during each Contract Year, where the sum of theprior partial surrenders in the year that are in excess of theThreshold, the adjustment is a factor. The factor is applied to theadjusted Death Benefit immediately before the surrender. The factor isas follows:1−(A/B) where

-   -   A=The amount of the Partial Surrender;    -   B=Contract Value immediately prior to the partial surrender.

Whenever a partial surrender is made on or after the contractanniversary immediately following the Covered Life's 60^(th) birthday(or other predetermined age), the DB will be equal to the amountdetermined as follows:

-   -   If the total partial surrenders since the most recent Contract        Anniversary are equal to or less than the current Lifetime        Benefit Payment (LBP), the DB becomes the DB immediately prior        to the partial surrender, less the amount of partial surrender,        less the amount of partial surrender paid out of the General        Account of the Company, OR    -   If the total partial surrenders since most recent Contract        Anniversary are more than the current LBP, but all partial        surrenders were paid under the Automatic Income RMD (AI RMD),        the DB becomes the DB immediately prior to the partial        surrender, less the amount of partial surrender, less the amount        of partial surrender paid out of the General Account of the        Company, OR    -   If the total partial surrenders since the most recent Contract        Anniversary exceed the total current LBP and the AI RMD        exception in does not apply, the adjustment is the dollar amount        of the partial surrender that does not exceed the LBP, and the        adjustment for the remaining portion of the partial surrender is        a factor. The factor for is applied to the portion of the Death        Benefit that exceeds the LBP. The factor is as follows:        1−(A/(B−C)) where    -   A=partial surrenders during the Contract Year in excess of the        LBP;    -   B=Contract Value immediately prior to the partial surrender.    -   C=LBP less any prior partial surrenders during the contract        year. If C results in a negative number, C=0 (zero).

For partial surrenders during each Contract Year, where the sum of theprior partial surrenders in the year that are in excess of the currentLBP, the adjustment is a factor. The factor for Adjustments for PartialSurrenders for the Death Benefit is applied to the adjusted DeathBenefit immediately before the surrender. The factor is as follows:1−(A/B) where

-   -   A=The amount of the Partial Surrender;    -   B=Contract Value immediately prior to the partial surrender.        11. Contract Value Reduces Below our Minimum Contract Value        Rules:

The Minimum Contract Value (MCV) is defined as [20%] of Your PaymentBase on the date of a withdrawal request. Lifetime Benefit Paymentscannot reduce the Contract Value below this minimum threshold. Onlysubaccount performance and withdrawals in excess of the LBP can decreasethe Contract Value below the MCV.

If total partial surrenders since the most recent Contract Anniversaryare less than or equal to the difference between the Contract Value andthe Minimum Contract Value (MCV), the Contract Value will be reduced bythe total partial surrender.

If the Contract Value at the time of a partial surrender is less than orequal to the MCV, the Contract Value will NOT be decreased for thepartial surrender. The requested partial surrender will be paid out ofthe General Account assets of the Company.

If the Contract Value immediately before the partial surrender isgreater than the MCV, but would drop below the MCV after the partialsurrender, the Contract Value will be liquidated to pay the LBP only tothe extent it would equal the MCV. The remaining portion of the LBP thatis not funded by the Contract Value will be paid out of the GeneralAccount assets of the company.

12. Covered Life Change:

Any contractual change before ACD which causes a change (defined below)in the Covered Life will result in a reset in the benefits providedunder this Rider and allows us to impose the Fund Allocationrestrictions as seen in Section 17.

Covered Life changes in the first 6 months of the contract issue date(or other time period) will not cause a change in the DB or PB. However,the WP and LBP may change based on the attained age of the Covered Lifeafter the Covered Life change.

If the Covered Life is changed and a withdrawal has been taken, bothwithin the first 6 months from contract issue date (or other timeperiod), then the LBP and WP will be calculated at the time of theCovered Life change and will be based on the new Covered Life's attainedage on the rider effective date.

If the Covered Life is changed and a withdrawal has NOT been taken, bothwithin the first 6 months from contract issue date (or other timeperiod), then the LBP and WP will be calculated upon the firstwithdrawal:

-   -   If the first withdrawal is after the first 6 months and before        the first contract anniversary (or other time period), then the        LBP and WP will be based on the new Covered Life's attained age        on the rider effective date.    -   If the first withdrawal occurs after the first contract        anniversary, then the LBP and WP will be calculated based on the        new Covered Life's attained age on the most recently attained        contract anniversary.    -   If the oldest Covered Life after the change is greater than the        age limitation of the Rider at the time of the change, then the        Rider will terminate, and the Death Benefit will be equal to        Contract Value.        Single Life Election:

Covered Life changes after the first 6 months of contract issue datewill cause a reset in the benefits.

If the oldest Covered Life after the change is equal to or less than agelimitation of the Rider at the time of the change, then either belowwill automatically apply.

If the Rider is not currently available for sale, We will revoke theWithdrawal Feature of this Rider.

-   -   We will continue the existing Rider with respect to the death        benefit only.    -   The Death benefit will be recalculated to the lesser of Contract        Value or the DB on the effective date of the Covered Life        Change.    -   The Rider charge is assessed on the revocation date, and then        will no longer be assessed.

If the Rider is currently available for sale, We will continue theexisting Rider with respect to all benefits, at the current Ridercharge.

-   -   The PB will be reset to the minimum of the Contract Value or the        PB on the date of the change.    -   The DB will be reset to the minimum of the Contract Value or the        DB on the date of the change.    -   The WP and LBP will be recalculated on the date of the change        and will be based on:        -   A. If withdrawals are taken prior to the first Contract            Anniversary, we will use the new Covered Life's attained age            on the rider effective date.        -   B. If withdrawals are taken after the first Contract            Anniversary, we will use the new Covered Life's attained age            on the contract anniversary prior to the first withdrawal.    -   The Maximum Contract Value will be recalculated to equal the        contact value on the date of the covered life change.

If the oldest Covered Life after the change is greater than the agelimitation of the Rider at the time of the change, then the Rider willterminate, and the Death Benefit will be equal to Contract Value.

If the rider is no longer available for sale and we have changed theissue age of the rider (to be determined on a non-discriminatory basis),and a Covered Life change occurs, and they exceed that newly determinedage limitation, then Rider will terminate, and the Death Benefit will beequal to Contract Value.

Joint/Spousal Continuation Election:

Covered Life changes after the first 6 months of contract issue date, IfYou and Your Spouse are no longer married, for reasons other than death,then Covered Life Changes may occur as follows:

-   -   If Surrenders have not been taken from the contract, then the        PB, the DB and the Max Contract Value remain the same; Covered        Life will be reset and the WP scale will be based on the        youngest Covered Life as of the date of the change, AND    -   You may remove Your spouse as Covered Life.    -   You may remove Your spouse as a Covered Life and replace your        original spouse with your new spouse, (these changes do not have        to happen on the same day).    -   If Surrenders have been taken from the contract, then you may        remove your spouse. The PB, the DB and the Max Contract Value        remain the same; The WP scale will be based on the attained age        of the remaining Covered Life as of the date of the change. Any        changes other than removing the spouse will follow the rules of        below.    -   If the oldest Covered Life after the change is greater than        (older) to the age limitation of the Rider at the time of the        change, then the Rider will terminate. The Death Benefit will be        equal to Contract Value.

If any other contractual change causes a change in the Covered Life,then either will automatically apply:

-   -   If the oldest covered life after the change is equal to or less        than (younger) the age limitation of the rider at the time of        the change, then We will revoke the Withdrawal Feature of this        Rider, (see Section 25). We will continue the existing Rider        with respect to the death benefit only. The Rider charge is        assessed on revocation date, and then will no longer be        assessed.    -   If the oldest Covered Life after the change is greater than        (older) the age limitation of the Rider at the time of the        change, then the Rider will terminate. The Death Benefit will be        equal to Contract Value.

If the rider is no longer available for sale and we have changed theissue age of the rider (to be determined on a non-discriminatory basis),and a Covered Life change occurs, and they exceed that newly determinedage limitation, then Rider will terminate, and the Death Benefit will beequal to Contract Value.

If the Spouse dies and is the Primary Beneficiary and the Covered Life,then the owner may remove them from the contract. The PB, DB and MaxContract Value will remain the same. The WP will be recalculated asfollows:

-   -   If there has been a partial surrender since the rider effective        date, then WP will remain at the current percentage.    -   If there has NOT been a partial surrender since the rider        effective date, then WP be based on the attained age of the        remaining covered life on the contract anniversary prior to the        first surrender.        13. Spousal Continuation:        Single Life Election:

In the event that the Contract Owner dies and Spousal Continuation iselected, we will increase the Contract Value to the DB value (thegreater of the Contract Value and the DB).

The Covered Life will be re-determined on the date of the continuation.

If the Covered Life is less than age 81 (or other predetermined age) atthe time of the continuation, then either of the below willautomatically apply:

-   -   If the Rider is not currently available for sale. We will revoke        the Withdrawal Feature of this Rider, (see Section 25). We will        continue the existing Rider with respect to the death benefit        only. The Rider charge is not assessed on revocation date, and        then no longer assessed, OR    -   If the Rider is currently available for sale, We will continue        the existing Rider with respect to all benefits, at the current        Rider charge.    -   The Payment Base and the Death Benefit will be set equal to the        Contract Value on the continuation date.    -   The LBP and WP will be recalculated on the continuation date.        The WP will be recalculated based on the age of the oldest        Covered Life on the effective date of the spousal continuation.        If the WP had previously been locked in, then it will become        unlocked and can change based on the next withdrawal.    -   The Maximum Contract Value will be set to Contract Value on the        continuation date.    -   If the Covered Life is greater than or equal to age 81 (or other        predetermined age) at the time of the continuation. The Rider        will terminate. The Death Benefit will be equal to Contract        Value.        Joint/Spousal Continuation Election:

In the event that the Contract Owner dies and Spousal Continuation iselected, we will increase the Contract Value to the DB value (thegreater of the Contract Value and the DB). The spouse may elect toeither:

Continue the contract and Rider

We will continue the existing Rider with respect to all benefits, at thecurrent contract Rider charge. The Payment Base will be equal to thegreater of Contract Value or Payment Base on the continuation date. TheLBP will be recalculated to equal the Withdrawal percent multiplied bythe greater of Contract Value or Payment Base on the continuation date.The Maximum Contract Value will be the greater of Payment Base orContract Value on the continuation date. The DB will be equal to thebumped up Contract Value on the continuation date. The WP recalculationrule:

-   -   The WP will remain at the current percentage if there has been a        Partial Surrender since the Rider effective date.    -   If there has not been a Partial Surrender, the WP will be based        on the attained age of the remaining Covered Life on the        Contract Anniversary prior to the first surrender/withdrawal.

The contract owner can NOT name a new owner on the contract.

-   -   The contract owner CAN name a new beneficiary on the contract.        Any new beneficiary added to the contract will not be taken into        consideration as a covered life.    -   The Rider will terminate upon the death of the surviving Covered        Life. OR

Continue the contract and revoke the Withdrawal Feature of the Rider.The charge is assessed on revocation date, and then no longer assessed.LIF only, See Section 25.

The Covered Life will be re-determined on the date of the continuationdate for death benefit purposes.

If the Covered Life is greater than the age limitation at the time ofcontinuation, the Rider will terminate. The Death Benefit will be equalto Contract Value

14. Effect of Death of the Owner or the Annuitant Before the AnnuityCommencement Date:

Single Life Election:

If the Deceased is And . . . And . . . Then the . . . Contract There isa The annuitant is living Joint contract Owner surviving or deceasedowner receives contract owner the DB, Rider terminates Contract There isno The annuitant is living Rider terminates Owner surviving or deceasedDesignated Contract Owner Beneficiary receives DB Contract There is noThe annuitant is living Rider terminates Owner surviving or deceasedEstate Contract Owner receives DB or Beneficiary Annuitant ContractOwner There is no contingent Contract is living annuitant and thecontinues, no DB contract owner is paid, Rider becomes the continuescontingent annuitant Annuitant Contract Owner There is no contingentRider terminates, is living annuitant and the contract owner contractowner waives receives DB their right become the contingent annuitantAnnuitant Contract Owner contingent annuitant is Contingent is livingliving annuitant becomes annuitant and the contract and Rider continuesAnnuitant Contract Owner There is no contingent Contract owner isnon-natural annuitant receives DB, person Rider terminatesJoint/Spousal Continuation Election:

Contingent Annuitant becomes Annuitant

If the annuitant dies where there is a Contingent Annuitant (who isdifferent from the Owner/Annuitant), then the rider continues and allprovisions of the rider remain the same, there are no resets nor DBspaid. Upon the death of the last surviving Covered Life, a DB is paid tothe beneficiary, and the rider terminates.

If the Deceased is . . . And . . . And . . . Then the . . . ContractThere is a The annuitant is The surviving contract Owner survivingcontract living or deceased owner continues the owner contract andRider, we will increase the contract value to the death benefit value.Contract There is no The annuitant is If the spouse is the Ownersurviving living or deceased sole primary Contract Owner beneficiary,follow spousal continuation rules for joint life elections ContractThere is no The annuitant is Rider terminates Owner surviving living ordeceased Estate receives DB Contract Owner or Beneficiary AnnuitantContract Owner If the spouse is the is non-natural sole primary personbeneficiary, follow spousal continuation rules for joint life electionsAnnuitant The Owner is There is a living The rider continues; livingContingent upon the death of the Annuitant last surviving Covered Life,the rider will terminate.15. Effect of Death after the Annuity Commencement Date:Single Life Election:

If the Deceased is And . . . And . . . Then the . . . Annuitant Theannuitant Fixed Lifetime and The lifetime is also the Period Certain iscontingency ceases. contract owner elected The remaining DB is paidunder Period Certain.Joint/Spousal Continuation Election:

If the Deceased is . . . And . . . And . . . Then the . . . AnnuitantThe annuitant is also Fixed Lifetime The lifetime benefit the contractowner, and Period ceases. The and there is no Certain is remaining DB issurviving Joint elected paid under Annuitant Period Certain. AnnuitantThe annuitant is also Fixed Joint and Lifetime Benefit the contractowner, Survivor Lifetime continues until and there is a and Period deathof last surviving Joint Certain is elected surviving Annuitant annuitant16. Rider Charge:

Rider charge is equal to (Option 1—30 bps; Option 2—40 bps; or otherformula) multiplied by the Payment Base on each contract anniversary.Contract Anniversary Date is the day of the anniversary; all processingafter the end of the trade date. (Other methodology could be used.)

(Note: other orders of transactions are possible.)

First—all other financial transactions.

Second—take the AMF.

Third—calculate PB increase (Option 2).

Fourth—Take the Rider Charge

If the Contract Value on the Contract Anniversary Date is less than orequal to the MCV, the AMF and Rider Charge are waived.

In case of total surrender, a pro rata share of the Rider charge isequal to the Rider charge percentage multiplied by the PB, multiplied bythe number days since the last contract anniversary (not to exceed 365days), divided by 365. If the Rider effective date is after the ContractIssue date, the period between the Rider effective date and the nextcontract anniversary will constitute a contract year. The proratedcharge will be assessed for this Contract Year.

The Rider charge is withdrawn from each investment option in the sameproportion that the value of the investment option bears to the ContractValue.

Includes all investment options, including the Fixed AccumulationFeature.

Does not include the DCA Plus feature. Any money in the DCA Plus featureis deducted from the contract value for purposes of determining theproportional value of each investment option.

If a surrender is taken on any other date other than the contractanniversary and such surrender causes the total surrenders during theyear to exceed the LBP and reduces the contract value to below theminimum account rules in affect on the valuation day of the surrender,we will deduct a pro rata share of the Rider charge from the amountotherwise payable.

The minimum amount does not include the fee.

The rider fee is not taken if the surrender amount is within the annualLBP.

The Rider charge will be discontinued once an Annuity Option availableunder the contract or Rider becomes effective.

The Rider charge may be limited on fixed accounts based on statespecific regulations.

We reserve the right to increase or decrease the charge for new issueonly, up to a predetermined maximum charge percentage anytime (e.g.0.75%).

For Option 1, no charge increase will apply once issued (although itcould possibly change in other forms).

For Option 2, We reserve the right to increase the Rider charge up to amaximum predetermined rate (e.g. 0.75%) at anytime.

We will only increase the charge on Riders eligible for future Benefitincreases.

No charge increase will apply once the Covered Life reaches age 80 (orother predetermined age).

If we increase the Rider charge, the contract owner has the followingoptions:

-   -   Accept the rider charge increase and continue to receive        automatic PB increases at contract anniversary, OR    -   Decline the charge increase and no longer receive automatic PB        increases at contract anniversary.

If the contract owner denies the charge increase, they will not be ableto accept the charge increase at a later date.

We will reserve the right to charge a different rider charge dependingon the participation in approved investment options.

17. Fund Allocation Restrictions:

We reserve the right to restrict investment in any investment option inthe case of a change of Covered Life after six months. If the investmentoption restriction is imposed by Us, the contract owner has thefollowing options,

-   -   Reallocate all existing money and all new premium to a        non-restricted investment option, an available asset allocation        program, or fund-of-fund investment option as we may offer from        time to time, OR    -   Revoke the Withdrawal Feature.

If the restrictions are violated, the Withdrawal feature will berevoked. The Death Benefit continues as is upon the date of revocation.

18. Aggregation:

For purposes of determining the PB under this Rider, We reserve theright to treat one or more deferred variable annuity contracts issued byUs to You with this Rider attached in the same calendar year as onecontract. If Hartford elects to aggregate contracts, we will change theperiod over which we measure withdrawals against the Benefit Payment.

We will treat the effective date of our election until the end of thecalendar year as a Contract Year for the purposes of the LBP limit. Apro rata Rider charge will be taken at the end of that calendar year. Aslong as total withdrawals in that period do not exceed the LBP, thewithdrawals will not necessitate a reset.

In future calendar years, the LBP limits will be aggregated and will beon a calendar year basis. In other words, withdrawals under allaggregated contracts in a calendar year will be compared against thecombined LBP limits for the aggregated contracts.

If withdrawals exceed those combined limits, the aggregate PB will beset to the combined Contract Values of the aggregated contracts. The,LBP, will then equal Withdrawal Percent multiplied by the new PB.

If withdrawals do not exceed those combined limits, each withdrawal willreduce the PB dollar for dollar. The withdrawal benefits relating to theContract Value reaching zero will not apply until the Contract Value ofall aggregated contracts reaches zero.

The Rider charge will be taken at the end of each calendar year. It willbe deducted pro rata from all of the sub-accounts and fixed accounts ofthe aggregated contracts.

If the Contract Values of all aggregated contracts are reduced below ourminimum account rules in effect, we will offer the annuity options asdefined earlier in this spec. The options will pay the combined LBP.

19. Annuity Commencement Date

If the annuity reaches the maximum ACD, which is the later of the10^(th) contract anniversary and the date the annuitant reaches age 90,the contract must be annuitized unless we and the Owner(s) agree toextend the ACD. In this circumstance, the contract may be annuitizedunder our standard annuitization rules, but under no circumstances willthe amount payable be less than your LBP, provided that the certainperiod does not exceed the Death Benefit remaining at the ACD divided bythe LBP.

Single Life Election:

We will issue You a Fixed Lifetime and Period Certain Payout.

The lifetime portion will be based on the Covered Life determined atACD. The Covered Life is the Annuitant for this payout option.

If there is more than one Covered Life then the lifetime portion will bebased on both Covered Lives. The Covered Lives will be the Annuitant andJoint Annuitant for this payout option. The lifetime portion willterminate on the first death of the two.

The minimum amount paid to You under this Annuity Option will at leastequal the remaining DB under this rider.

If the oldest Annuitant is age 59 (or other predetermined age) oryounger, We will automatically defer the date the payments begin untilthe oldest Annuitant attains age 60 (or other predetermined age) and iseligible to receive payments in a fixed dollar amount until the later ofthe death of any Annuitant or a minimum number of years.

If the Annuitant(s) are alive and age 60 (or other predetermined age) orolder, You will receive payments in a fixed dollar amount until thelater of the death of any Annuitant or a minimum number of years.

The minimum number of years that payments will be made is equal to theremaining DB under this rider divided by the product of the payment baseon the ACD multiplied by the greater of the WP and 5% Single (4½%Spousal).

${Single}\mspace{14mu}{Election}\text{:}\mspace{14mu}\frac{D\; B}{P\; B \times {{Max}\left( {{W\; P},{5\%}} \right)}}$${Joint}\text{/}{Spousal}\mspace{14mu}{Election}\text{:}\mspace{14mu}\frac{D\; B}{P\; B \times {{Max}\left( {{W\; P},{4\frac{1}{2}\%}} \right)}}$

This annualized amount will be paid over the greater of the minimumnumber of years, or until the death of any Annuitant, in the frequencythat You elect.

The frequencies will be among those offered by Us at that time but willbe no less frequently than annually.

If, at the death of any Annuitant, payments have been made for less thanthe minimum number of years, the remaining scheduled period certainpayments will be made to the Beneficiary. A lump sum option is notavailable.

Joint/Spousal Continuation Election:

The minimum amount paid to You under this Annuity Option will at leastequal the DB under this rider.

If the younger Annuitant is alive and age 59 (or other predeterminedage) or younger, we will automatically defer the date that paymentsbegin until the younger Annuitant attains age 60 (or other predeterminedage) and is eligible to receive payments in a fixed dollar amount untilthe death of the last surviving Annuitant or a minimum number of years.

If the Annuitants are alive and the younger Annuitant is age 60 or older(or other predetermined age), you will receive payments in a fixeddollar amount until the death of the last surviving Annuitant or aminimum number of years.

The minimum number of years that payments will be made is equal to theremaining DB under this rider divided by the LBP at annuitization.

This annualized amount will be paid over the greater of the minimumnumber of years, or until the death of the last surviving Annuitant, inthe frequency that You elect.

The frequencies will be among those offered by Us at that time but willbe no less frequently than annually. If, at the death of the lastsurviving Annuitant, payments have been made for less than the minimumnumber of years, the remaining scheduled period certain payments will bemade to the Beneficiary. A lump sum option is not available. If bothspouses are alive, We will issue You a Fixed Joint & Survivor Lifetimeand Period Certain Payout. The Covered Life and Covered Life's spousewill be the Annuitant and Joint Annuitant for this payout option. Thelifetime benefit will terminate on the last death of the two. If onespouse is alive, We will issue You a Fixed Lifetime and Period CertainPayout. The lifetime portion will be based on the Covered Life. TheCovered Life is the Annuitant for this payout option. The lifetimebenefit will terminate on the last death of the Covered Life.

20. Assignment

The benefits under this Rider cannot be assigned.

21. Free Look Provision

If the Free Look Provision under the contract is exercised, the Riderwill terminate.

22. Availability

Subject to state approval, this Rider will be made available on allcurrently available products issued on or after the date the Rider islaunched for sale in the state of issue. This does not imply post-issueelection. Post-issue election will be determined on an as needed basis.Product—See product Requirements for Complete List

23. Optional Benefits

Principal First: No

Principal First Preferred: No

Lifetime Income Builder: No

MAV/PLUS: YES

MAV: Yes in states and distribution firms where MAV/PLUS is notavailable Premium Security: No

24. Premium Restrictions

Prior company approval is required on all subsequent premium paymentsreceived after the first 12 months. Approval Rules:

-   -   We will not accept any subsequent premium payment which brings        the total cumulative subsequent premiums in excess of $100,000        without prior approval.    -   Payment enhancements and employee gross-up are not to be        included in premium total.        25. Revoking the Withdrawal Feature        Benefit Option 1

At any time following the earlier of Spousal Continuation or 5^(th)anniversary of the Rider effective date, the Contract Owner may elect torevoke the Withdrawal Feature of the Rider. The Payment Base will go toZero and the Withdrawal Percent will go to Zero, and LBP will go toZero.

On the date the withdrawal feature is revoked, a pro rata share of theRider charge is equal to the Rider charge percentage multiplied by thePB, multiplied by the number days since the last charge was assessed,divided by 365. The Rider Charge will be assessed on revocation date,and then will no longer be assessed.

The Death Benefit continues as is upon the date of the revocation.

No other living benefit may be elected upon the revocation of theWithdrawal Feature.

Benefit Increase Option 2

The Contract Owner can not elect to revoke the Withdrawal Featurehowever The Hartford can revoke the Withdrawal Feature in certaincircumstances. See specific sections on Ownership and SpousalContinuation.

26. Post-Issue Election

If the rider effective date is after the contract issue date, then theperiod between the rider effective date and the next contractanniversary will constitute a contract year.

27. Product-Specific Features & Impacts

The Employee Gross-Up is not considered premium for purposes of thepayment base and death benefit.

Payment Enhancements are not considered premium for purposes of thepayment base and death benefit.

Front-end Loads are not taken from the premium for purposes of thepayment base and death benefit.

The following description and examples further illustrate the preferredfeatures of the present invention.

The “Minimum Contract Value” is defined as a predetermined percentage[i.e. 20%] of your Payment Base on the date of a withdrawal request.Lifetime Benefit Payment (LBP) withdrawals cannot reduce the ContractValue below this minimum threshold. Only sub-account performance andwithdrawals in excess of the LBP can decrease the Contract Value belowthe Minimum Contract Value. For example, if the Payment Base is$100,000, the Minimum Contract Value is equal to $20,000 (20% of$100,000).

Each time a Lifetime Benefit Payment withdrawal request is received, atest will be performed on the Contract Value to determine if it is belowthe Minimum Contract Value or would drop below the Minimum ContractValue due to the requested LBP. If a requested Lifetime Benefit Paymentwould drop the Contract Value below the Minimum Contract Value, theContract Value will be liquidated to pay the LBP only to the extent itwould equal the Minimum Contract Value. The remaining portion of the LBPthat is not funded by the Contract Value will be paid out of the GeneralAccount assets of the company. The Guaranteed Death Benefit is reducedby the full amount of the LBP regardless of whether the LBP is paid fromthe Contract Value or the General Account of the company. See Example 1below.

Example 1

-   -   LBP withdrawal request=$5,000    -   Current Contract Value=$23,000    -   Minimum Contract Value=$20,000    -   Guaranteed Death Benefit=$20,000    -   In this situation, the $5,000 request would drop the Contract        Value to $18,000 if it were to be paid entirely from the        Contract Value, which is lower than the Minimum Contract Value.        Therefore, the Contract Value will only drop to the Minimum        Contract Value of $20,000, and the remaining $2,000 will be        funded by the General Account assets of the company.

Therefore, the request will be processed as follows:

-   -   LBP paid=$5,000    -   New Contract Value=$20,000 (equals the Minimum Contract Value)    -   New Guaranteed Death Benefit=$15,000 ($20,000 minus the $5,000        LBP)    -   At death, the Death Benefit would be the greater of the Contract        Value and the Guaranteed Death Benefit, which in this case would        be $20,000    -   Amount paid from the Contract Value=$3,000 (reduces the Contract        Value to the Minimum Contract Value)    -   Amount paid from the General Account of the company=$2,000 (the        difference between the LBP and the amount paid out from the        Contract Value)

If the Contract Value is below the Minimum Contract Value on the date ofthe requested LBP, the LBP will be paid entirely out of the GeneralAccount assets of the company, and the Contract Value will not bereduced. See Example 2 below.

Example 2

-   -   LBP withdrawal request=$5,000    -   Current Contract Value=$10,000    -   Minimum Contract Value=$20,000    -   Guaranteed Death Benefit=$4,000

The request will be processed as follows:

-   -   LBP paid=$5,000    -   New Contract Value=$10,000    -   New Guaranteed Death Benefit=$0    -   At death, the Death Benefit would be the greater of the Contract        Value and the Guaranteed Death Benefit, which in this case would        be $10,000

Note the Guaranteed Death Benefit is reduced by the amount of the LBP,and will not drop below $0.

If the withdrawal request is in excess of the LBP, then the Payment Baseand the Death Benefit will all be proportionally reduced by the excesswithdrawal amount. The Contract Value, even if it is below the MinimumContract Value, will also be reduced by the amount of the excesswithdrawal.

If applicable, the rider fee will not be collected if the Contract Valueis equal to or less than the Minimum Contract Value on the ContractAnniversary. If the Contract Value on the Contract Anniversary is higherthan the Minimum Contract Value, the rider fee would be assessed, butwould never drop the Contract Value below the Minimum Contract Value.(For example, if the Contract Value is $20,100, the Minimum ContractValue is $20,000 and the rider fee is $400, only a $100 rider fee willbe collected, and the remaining $300 will be waived.)

The AMF (Account Maintenance Fee) will not be collected if the ContractValue is equal to or less than the Minimum Contract Value on theContract Anniversary. If the Contract Value on the Contract Anniversaryis higher than the Minimum Contract Value, the AMF would be assessed,but would never drop the Contract Value below the Minimum ContractValue.

In addition, the account may be subject to M, E & A, 12 b-1 and fundlevel charges. These charges may or may not be assessed against thecontract value if the contract value is below the minimum contractvalue.

Since the fees typically assessed against the contract are not collectedif the Contract Value drops below the Minimum Contract Value, theContract Value can never reduce to $0 unless the funds backing thesub-accounts become valueless or a full liquidation is taken.

The product will have a maximum Annuity Commencement Date which is thelater of the 10^(th) contract anniversary and the date the annuitantreaches age 90. Asset-based trail commissions will continue to be paiduntil annuitization. If the total Contract Value is withdrawn, thecontract will terminate.

Having thus described the invention in rather full detail, it will beunderstood that such detail need not be strictly adhered to, but thatadditional changes and modifications may suggest themselves to oneskilled in the art, all falling within the scope of the invention asdefined by the subjoined claims.

1. A data processing method for administering a deferred annuity productduring the accumulation phase with a computer, comprising: receivinginformation regarding providing the deferred annuity product for arelevant life with a communications module, wherein the deferred annuityproduct has a contract value, a plurality of lifetime benefit payments,and a minimum contract value, wherein the information regarding thedeferred annuity product is received from a contract owner; determininga payment base for the deferred annuity product with a processor,wherein the payment base is a function of the premium payments made byor on behalf of the relevant life and a function of the plurality oflifetime benefit payments received by the relevant life; determining aminimum contract value for the deferred annuity product with theprocessor, wherein the minimum contract value exceeds at least onelifetime benefit payment of the plurality of lifetime benefit paymentsfor the lifetime of the relevant life; receiving one or more premiumpayment or payments from or on behalf of the relevant life with thecommunications module, wherein the premium payments are received duringthe accumulation phase, and further wherein the premium paymentsincrease the payment base, increase a guaranteed death benefit amount,and increase the contract value; transmitting via the communicationsmodule, the lifetime benefit payments to the relevant life, wherein thelifetime benefit payments are a function of a predetermined withdrawalpercentage, wherein the lifetime benefit payments are guaranteed for thelifetime of the relevant life, wherein the lifetime benefit paymentsreduce the contract value, and further wherein excess withdrawalpayments made in excess of the lifetime benefit payment or paymentsdecrease the contract value, wherein said contract value does not fallbelow the minimum contract value and a death benefit amount does notfall below the contract value if the deferred annuity product makesperiodic lifetime benefit payments that do not contain the excesswithdrawal payment or payments during the lifetime of the relevant life.2. The data processing method of claim 1, wherein the contract valuedoes not decrease below the minimum contract value if withdrawalpayments in excess of the lifetime benefit payments are not made duringthe lifetime of the relevant life.
 3. The data processing method ofclaim 2, wherein the minimum contract value is one of a predeterminedpercentage of the payment base or a predetermined percentage of a totalof the premium payments received during the accumulation phase.
 4. Thedata processing method of claim 3, wherein the predetermined percentageis between 0% and 100%.
 5. The data processing method of claim 1,wherein the lifetime benefit payment is determined by the followingformula:lifetime benefit payment=[the Payment Base]×[the Withdrawal Percent]. 6.The data processing method of claim 5, wherein the withdrawal percent isa function of the relevant life's age.
 7. The data processing method ofclaim 6, wherein the first lifetime benefit payment made determines theWithdrawal Percent for the deferred annuity product.
 8. The dataprocessing method of claim 1, wherein the deferred annuity product is avariable annuity product.
 9. The data processing method of claim 8,wherein the variable annuity product includes sub-accounts, whereinmarket performance of the sub-accounts cause the contract value todecrease below the minimum contract value.
 10. The data processingmethod of claim 1, wherein the deterred annuity product is a fixedannuity.
 11. The data processing method of claim 1, wherein acommencement date for the deferred annuity product is the later of the10^(th) contract anniversary and the date the relevant reaches age 90.12. The data processing method of claim 1, further comprising collectinga rider fee.
 13. The data processing method of claim 12, furthercomprising collecting a rider fee only if the contract value is greaterthan the minimum contract value.
 14. The data processing method of claim13, further comprising collecting an account maintenance fee.
 15. Thedata processing method of claim 14, further comprising collecting anaccount maintenance fee only if the contract value is greater than theminimum contract value.
 16. The data processing method of claim 1,wherein the lifetime benefit payment is determined by the followingformula:LBP=the greater of(i) “the guaranteed lifetime benefit payment”−[the Payment Base]×[theWithdrawal Percent]; and(ii) “the maximum lifetime benefit payment”−[the Contract Value]×[theWithdrawal Percent].
 17. The data processing method of claim 1, whereinthe lifetime benefit payment is paid periodically.
 18. The dataprocessing method of claim 1, further comprising making the lifetimebenefit payments from the General Account Assets of the company issuingthe annuity product if the contract value is equal to or less than theminimum contract value.
 19. The data processing method of claim 1,wherein the minimum contract value is guaranteed for the life of thecontract.